While there are many options for filing your taxes, the best one depends on your unique circumstances. For those with simple returns, a chain tax prep service may suffice. Still, those needing personalized advice should seek a credentialed preparer, such as a CPA, an attorney, an enrolled agent, or someone who has completed the IRS’ annual filing season program.
Look for Credentials
It’s essential to look for credentials when choosing a tax preparer like tax preparation service Santa Ana CA. Those with higher credentials are more likely to be knowledgeable and understand the complexities of filing taxes. To find someone with these qualifications, you can search for them in the IRS Directory of Federal Tax Return Preparers. The directory includes CPAs, tax attorneys, enrolled agents, certain types of actuaries and retirement planners, and Annual Filing Season Program participants.
If a preparer does not have one of these credentials, it’s best to move on to another choice. They may be unable to help you if something goes wrong with your filing.
It’s also good to ask about their certification and licensing status and how they charge for services. Make sure to clarify whether they charge by the hour, by the number of forms they complete, or by a combination. Then, you can be confident that you’re receiving the best service for your money.
Check Out Reviews
There are a lot of options when it comes to tax preparation services. Each service offers something different, from big-name services to smaller companies focusing on one or two states to online options like Jackson Hewitt. It’s essential to read reviews and compare prices before choosing a service.
Look for a good track record and transparency when it comes to pricing. The Better Business Bureau is a great place to start for this information, and you should also check the preparer’s licensing status or disciplinary action with the IRS.
Be wary of spectacular refund promises, as these are often a sign of questionable practices. Avoiding any preparer who wants you to sign a blank tax return would be best. This is a red flag, and it’s as bad as signing a blank check.
Ask About Fees
As a tax preparer, you may have to weigh the costs of running your business and providing quality service to your clients. Those costs include software subscriptions, office space, marketing strategies, insurance, education, and professional memberships. Considering these costs can help determine whether your billing rates cover those expenses and still leave room for profit.
Ensure you find out what is included in your preparer’s fees and any extra services, like e-filing or audit protection. Also, be aware of hidden costs, such as those charged for each call or office visit.
Anyone who offers paid tax preparation services must be registered with the IRS and have a preparer tax identification number (PTIN). If your preparer does not have a PTIN, the IRS could charge you hefty fines. It is essential to ask your prospective preparer for their PTIN before hiring them, especially during busy times of the year.
Ask About Additional Services
Knowing what services you should expect your preparer to provide is essential. This can help you decide whether an individual or a tax preparation service is right for you. For example, some companies offer additional services like filing your return electronically and direct deposit of your refund. This may be an added benefit for consumers who want their taxes done quickly and accurately.
Many of the larger chains also provide guarantees, such as a guarantee that your return will be error-free or they’ll pay any penalties you might incur due to their mistakes. Some preparers also offer follow-up services, such as representing you if the IRS calls you with questions about your tax return.
If you’re a small business owner, finding a preparer who understands the various tax laws that apply to your company is a good idea. They can optimize your deductions and credits and help you avoid late-filing penalties.
